{"id":1184143,"date":"2020-05-13T11:19:49","date_gmt":"2020-05-13T16:19:49","guid":{"rendered":"https:\/\/www.mining.com\/?p=1023715"},"modified":"2020-05-13T11:19:49","modified_gmt":"2020-05-13T16:19:49","slug":"canada-may-review-imminent-endeavour-mining-semafo-merger","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1184143","title":{"rendered":"Canada may review imminent Endeavour Mining-Semafo merger"},"content":{"rendered":"<p>Canadian authorities may launch a national\u00a0security\u00a0review of the imminent merger between Endeavour Mining (TSX:EDV) and smaller rival Semafo (TSX: SMF), which <a href=\"https:\/\/www.mining.com\/endeavour-buys-rival-semafo-creates-one-of-west-africas-top-gold-miners\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">would create West Africa\u2019s top gold producer<\/a>.<\/p>\n<div class='ad-slot' id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {    googletag.display('div-gpt-ad-1561499308230-0');    googletag.pubads().addEventListener('slotRenderEnded', function (event) {        if (event.isEmpty) {            var id = event.slot.getSlotElementId();            var x = document.getElementById(id);            if(x == null) return;            if (x.parentElement.classList.contains('ad-slot')) {                x.parentElement.style.display = 'none';            }\t\t\t\t        }    });});<\/script><\/div>\n<p>The proposed deal would bring<br \/>\ntogether six mines into one portfolio, with a combined production estimated at<br \/>\nover 1 million ounces a year.<\/p>\n<p>In a <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.semafo.com\/English\/news-and-media\/news-releases\/news-releases-details\/2020\/SEMAFO-Cash-Flow-from-Operating-Activities-before-Changes-in-non-Cash-Working-Capital-of-60-Million-and-Transaction-Update\/default.aspx\" >financial update<\/a>, Quebec-based Semafo said the director of investments under the Investment Canada Act, had recently contacted Endeavour. In the communication it told the miner that the Innovation, Science and Economic Development Minister was considering whether to put the proposed merger under scrutiny.<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>Proposed merger would create West Africa\u2019s top gold producer, with a production estimated at over 1 million ounces a year.<\/p>\n<\/blockquote>\n<\/figure>\n<p>Neither company was aware of any<br \/>\nreasons for the notice, Semafo said, adding that Endeavour would work with the<br \/>\ndirector to address any concerns.<\/p>\n<p>Minister Navdeep Bains has until June 25 to make a decision on a review of the C$1 billion-deal, <a href=\"https:\/\/www.mining.com\/endeavour-buys-rival-semafo-creates-one-of-west-africas-top-gold-miners\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">announced in March<\/a>.<\/p>\n<p>Semafo noted that, while its head office is located in Montreal, it has no mining operations in Canada. Its assets are all related to\u00a0gold\u00a0production and\u00a0exploration\u00a0in Burkina Faso.<\/p>\n<h2><strong>Long-time coming<\/strong><\/h2>\n<p>Endeavour and Semafo have<br \/>\npreviously worked as industry partners. In early 2019, they began a dialogue to<br \/>\nevaluate the merits of a business combination, but were unable to reach a deal.<br \/>\nTalks resumed earlier this year, the companies said.<\/p>\n<p>So far, the deal has received the support of key stakeholders, Semafo said. The proposed tie-up requires approval by a simple majority of the votes cast by Endeavour shareholders and a two-thirds majority vote by the target miner\u2019s shareholders.<\/p>\n<p>Semafo\u2019s shares have lost more than<br \/>\n50% of their value&nbsp;<a href=\"https:\/\/www.mining.com\/semafo-suspends-operations-at-boungou-mine-after-burkina-faso-attack\/\"  rel=\"noreferrer noopener\">since early November<\/a>, when a convoy of mine employees was<br \/>\nattacked in eastern Burkina Faso. The ambush&nbsp;<a href=\"https:\/\/www.mining.com\/web\/at-least-37-killed-in-attack-on-canadian-miner-semafo-convoy-in-burkina-faso\/\"  rel=\"noreferrer noopener\">caused at least 37 deaths<\/a>&nbsp;and triggered an operations halt<br \/>\nat Boungou mine.<\/p>\n<p>Work to process stockpiles at the mine\u2019s<br \/>\nplant was restarted in February, with employees and contractors transported by<br \/>\nair and lodged on site. The planned resumption of mining in the fourth quarter,<br \/>\nhowever, is conditional on improvements to security on the public road and in<br \/>\nthe surrounding region, Semafo said at the time.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>While Semafo&#8217;s head office is located in Montreal, all of its assets are in in Burkina Faso.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,949,369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1184143"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1184143"}],"version-history":[{"count":4,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1184143\/revisions"}],"predecessor-version":[{"id":1184162,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1184143\/revisions\/1184162"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1184143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1184143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1184143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}